Training Aircraft Fleet Lease – China
- Acquisition of Single-Engine Training Aircraft
- Acquisition of Multi-Engine Training Aircraft
- Aircraft Fleet Leased to training organizations in China
- Minimum Investment: $3 million
- Project Size: $10+ million (depends on demand)
- Type of Shares: Equity Shares
Flight Training in China
Flight training for ab-initio CAAC Part 141 in China is in high demand. Airlines in China have been sending students abroad (especially to the U.S.) for years, but due to increased demand for training and shortage of pilots in the U.S., flight schools in there are accepting less and less students from the Chinese airlines. This has created an opportunity within China to buildup the flight training business.
In 2019 there were 41 approved CAAC 141 flight schools in China. Many of those flight schools are not equipped to train large number of students.
The biggest challenge for any new flight school setup in China is to secure a fleet of training aircraft to establish continuous growth to meet the demand of training in China. This is largely due to the lack of capital to acquire the training fleet.
MAG Aircraft Leasing, has a model that will greatly reduce the capital required by the flight schools and can assist them to get into a new fleet of aircraft.
Due to high demand of training aircraft, there is a waiting time of over a year to get into a new aircraft. MAG plans to order a fleet of aircraft that will be delivered over time, so to be situation for the future growth of the flight training industry in China.
MAG will make an order of minimum of 6 Single-Engine Aircraft and 2 Multi-Engine Aircraft to secure a position with the OEM’s. Each of the OEM’s will require a down payment of 30% to 40% of the total value of the deal. Further payments will be made as required by the contract between MAG and the OEM.
All taxes, tariffs, shipping and assembly costs will be calculated into the final price of each aircraft.
MAG operational arm, AviAsia Aviation Solutions, oversees the operations and the business management in China.